The Government has limited scope in the upcoming Budget and it is understood Minister for Finance Paschal Donohoe will use the opportunity to outline a multi-annual budgetary framework in an attempt to offer clarity on impending tax reductions.

Pay deal

While the official fiscal space for Budget 2018 is €1.2 billion, €900 million has effectively been spent on the carryover effects of the previous budget and the new public-sector pay deal.

Minister for Health Simon Harris stressed the need for the Budget to be balanced between spending increases and tax cuts.

He said it was essential money was put back in people’s pockets in order for the economy to grow, and he expressed a desire for targeted spending increases.

“It is about being intelligent and clever in the choices we make in the run up to the Budget,” Mr Harris said.

In terms of his Department, he said he was confident the Health Service Executive would meet its budget and would not require additional resources.

The Government had to allocate an additional €500 million in the middle of last year to ensure it did not seek a bailout.

Meanwhile, Ms Doherty has insisted she would pay back any monies she received as Government chief whip if asked to do so.

Ms Doherty received an additional €15,829 for her work as chief whip but may not have been eligible for the payment under current legislation.“I have no doubt in my head that I am going to be told to repay it and, if I am, I will repay it. It as simple as that,” she said.